JAKARTA - PT Astra International Tbk (ASII) recorded a consolidated net profit of IDR 33.84 trillion by the end of 2023. The growth in profit performance was dominated by the infrastructure and logistics, financial services, and automotive business lines.

Based on an official release today (27/2), the increase in Astra's net profit by 17% year-on-year (yoy), from IDR 28.94 trillion in 2022, is in line with net income which grew 5% yoy to IDR 316.57 trillion.

The infrastructure and logistics business line recorded the highest jump in net profit, reaching 85% yoy. This achievement was mainly supported by shareholdings in the Trans Jawa and Jakarta Outer Ring Road toll roads, as well as the performance of PT Serasi Autoraya (SERA), an Astra subsidiary, which recorded a 26% increase in profit to IDR 213 billion by the end of 2023.

However, the largest portion of ASII's consolidated net profit came from the automotive business line. "The Group's automotive division net profit rose 18% to IDR11.4 trillion, reflecting increased sales in the motorcycle and automotive components businesses," explained Djony Bunarto Tjondro, President Director of Astra, through an official release.

Consumer financing was also the main driver of the growth in Astra's financial services business contribution. "The net profit of the Group's financial services division increased by 30% to IDR7.9 trillion by 2023," said Tjondro.

With this satisfactory performance record until the end of 2023, Astra's board of directors also proposed a dividend distribution of IDR 421 per share. This amount, when added with the interim dividend of IDR 98 per share distributed last October, makes Astra's final dividend for 2023 reach IDR 519 per share.

"The dividend payout ratio is 62%. This ratio is higher than the average historical dividend payout ratio of the Company," continued Tjondro. The dividend will be proposed at ASII's Annual General Meeting of Shareholders in April.

Although ASII's performance looked bright at the end of the year, the board of directors acknowledged challenges in the form of weakening commodity prices and economic conditions in the second semester of 2023. "If these two conditions continue, we anticipate a downturn in the growth cycle in 2024," Tjondro admitted.

The agribusiness line did experience a decline in contribution, especially from PT Astra Agro Lestari Tbk (AALI), Astra's subsidiary in the palm oil sector. AALI reported that its profit fell by 39% yoy to IDR 1.1 trillion, making its contribution to consolidated net profit fall to IDR841 billion.

Similarly, the declining prices of gold and coal caused the contribution of the heavy equipment, mining, construction, and energy line to stagnate at IDR12.64 trillion until the end of 2023. (ZH/LM)